The WSJ billion dollar startup club
The infographic created by the WSJ can be used to track how the membership of this club evolves and what the valuation of these companies individual and as a group is. In line with the findings in the Digital Evolution Index there is a limited number of European companies in the club and their number and valuation aren’t growing as fast as Asia and USA ones.
In January 2014 only 2 of the 42 companies in the billion dollar club are from Europe. In September 2015 just 10 of the 118 are European based companies. Here is the list of billion dollar startups in Europe:
- Global Fashion Group
- Delivery Hero
- Adyen – Read: The unicorn of Amsterdam
- Funding Circle
Rocket Internet and Zalando exited the list in October 2014 because of their IPOs. All are located in the countries with the best internet infrastructure: United Kingdom (London), Sweden, Germany, The Netherlands, Luxembourg and France.
The TechCrunch billion dollar startup club
Besides WSJ and Dow Jones VentureSource TechCrunch also curates a list of Unicorns. A Unicorn being a private company with a post-money valuations of $1 billion or more. The TechCrunch Unicorn Leaderboard features one European company that isn’t listed at the WSJ’s list: Auto1 Group from Berlin, Germany.
The picture in both leader boards is the same: there is a relative low number of billion dollar European startups. It is the same in the emerging Unicorns list.
Does Europe fall behind?
Looking at both the WSJ and TechCrunch list of unicorns and the findings in the Digital Evolution Index it certainly looks like Europe is falling behind. If the EU wouldn’t agree why would they have bothered to start a digital agenda (a Europe 2020 initiative)?
Thomas Petersen has written Why is Europe failing to create more unicorns? Mainly stating that there is no true single European market, the EU doesn’t make it better for entrepreneurs (yet worse because of legislation and political sub optimisations), and there is geolocation where both money and technical knowledge gravitate to.
Besides those, there is a reason that al European unicorns are situated in the countries with the best internet infrastructure. Larger parts of Europe aren’t in that position yet.
Some of the European countries with unicorns are in the stall out group in the DESI index. Meaning that measures should be taken to get their momentum back because they run the risk of falling behind.
Again Europe should work really hard on creating a true single digital European market. Reducing the number of laws and trade barriers is key.